Author Question: FIGURE 4-4Refer to Figure 4-4. There have been proposals that a tax be imposed on sugar-laden soft ... (Read 25 times)

blinding37 · **on:** Oct 12, 2022

Question 1

If the price elasticity of demand is 3.0, then a 10% decrease in price results in a
◦ 30% increase in quantity demanded.
◦ 3.0% decrease in quantity demanded.
◦ 30% decrease in quantity demanded.
◦ 3.0% increase in quantity demanded.
◦ no change in quantity demanded.

Question 2

FIGURE 4-4

Refer to Figure 4-4. There have been proposals that a tax be imposed on sugar-laden soft drinks in an attempt to reduce their consumption. Assume for simplicity that all bottled soft drinks are the same size. Suppose the initial market equilibrium is P = $2.00 and Q = 1000. Suppose the government imposes a tax of $0.60 per soft drink purchased. The change in total expenditure by consumers on soft drinks is

◦ a decrease of $80.
◦ an increase of $480.
◦ an increase of $320.
◦ a decrease of $160.
◦ No change in total expenditure.

aublw · **Reply #1 on:** Oct 12, 2022

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 49% of students answer this correctly